382.796 Conspicuous notice of all fees and obligations to be included in real estate
334 words·~2 min read·
/ky/382-796A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
purchase contracts -- Civil remedies -- Buyer's waiver of rights void. On and after April 11, 2012:
(1)Any contract or other instrument used for the sale of real property which obligates
the buyer to pay a fee to the seller upon the subsequent resale of the real property,
whether the fee or charge is a fixed amount or is stated as a percentage of the value
of the property, the purchase price, or other consideration given for the subsequent
transfer, shall include a conspicuous provision:
(a)Disclosing the existence of the obligation;
(b)Describing the obligation; and
(c)Stating that private transfer fee obligations, as that term is defined in KRS
382.792, are prohibited under KRS 382.794;
(2)A contract or other instrument for the sale of real property subject to the provisions
of this section and found not to be in compliance shall be void and shall:
(a)Not be enforceable by the seller against the buyer;
(b)Not subject the buyer to any liability to the seller for any damages; and
(c)Require the seller to return all deposits made in connection with the sale of the
real property;
(3)If a private transfer fee obligation is not discovered until after title of the property
has passed to the buyer, the buyer may recover any and all damages resulting from
the failure to disclose the obligation, including but not limited to:
(a)1. The amount of any obligation paid by the buyer to the seller, including
interest thereon; or
2. The difference between the market value of the real property if it were
not subject to a private transfer fee obligation and the market value of
the real property as subject to a private transfer fee obligation; and
(b)Attorneys fees, expenses, and costs incurred by the buyer in seeking the
remedies under this section; and
(4)Any provision in a contract, covenant, or other instrument that purports to waive the
rights of a buyer under this section shall be void.